Multinational - Domestic debt markets development in the West African Monetary Zone

The proposed operation is a technical assistance and capacity building project to be financed by a grant under Pillar III of the Transition Support Facility. It complements the Bank’s previous intervention to reform the West African Monetary Zone (WAMZ) Payment Systems used by the Central Banks of Guinea, Sierra Leone and Liberia. This project seeks to help diversify the investor base by supporting the development of a framework for mutual funds, insurance, pension funds etc. and establishment of a primary dealership systemin order to contribute in freeing up banks’ resources for the financing of the real sector. It proposes to review the status of the debt markets in the four countries to identify characteristics and varying levels of development to establish a robust roadmap and action plan for debt market development. The project has been designed to encompass three components(i) improvement of debt market infrastructure; (ii) Strengthening of domestic debt markets; and (iii) project management. It is focused on three key areas: (i) creation of an enabling environment for domestic resource mobilisation; (ii) technical assistance for the upgrading and/or modernisation of debt markets infrastructure; and (iii) sensitisation and financial education for investors in debt markets. The estimated project implementation period is 3 years from June 2020 to June 2023. The total cost is UA 1.5 million.